News Corp looks to buy stake in YES Network

News Corporation is close to acquiring a stake in the YES Network, the New York-based cable channel that broadcasts Yankees baseball and Nets basketball games, among other regional sports, a person briefed on the discussions said Wednesday.

The companies are still in negotiations, but a deal could be completed soon, possibly as early as Friday, according to the person, who could not comment publicly because the talks were ongoing.

Partly owned by the Yankees and available in more than 15 million homes, the YES Network — short for Yankees Entertainment and Sports — would add significant heft to News Corporation’s already large portfolio of regional sports assets and fits into the company’s strategy of building its sports television business.

Last month, Yankees officials said they met with Fox executives in New York to discuss the media company’s interest in acquiring a stake in YES Network. The team’s holding company, Yankees Global Enterprises, would maintain its 34 per cent stake.

News Corporation would likely buy a stake in YES from the Yankees’ equity partners, which include Goldman Sachs and Providence Equity Partners, among others.

A News Corporation spokeswoman declined to comment, as did a spokeswoman for the Yankees.

The price of the deal was not disclosed, but overall the YES Network, one of the most watched regional sports networks in the country, is worth an estimated $US3 billion.
Rupert Murdoch
’s son,
James Murdoch
, the company’s deputy chief operating officer, sits on the board of Yankees Global Enterprises. James Murdoch has recently amassed greater domestic responsibilities at News Corporation, where he now oversees the Fox broadcast channel, regional sports networks and National Geographic channels, among other television assets.

News Corporation has stockpiled cash, the result of its abandoned bid to acquire the portion of the British satellite provider BSkyB that it did not already own. The company closed its fiscal year with $US9.6 billion in cash on hand, prompting analysts to predict upcoming acquisitions.